The FHA has revised the required time frame for mortgagees to submit the original promissory note associated with a partial claim and laid out the penalties for noncompliance. The guidance became effective on Sept. 1, 2015. On the same day, The Department of Housing and Urban Development issued letters demanding full reimbursement of all amounts associated with overdue partial-claim documents after Sept. 1. The guidance also reminded lenders of the procedures for preparing and submitting partial-claim documents to HUD’s loan-servicing contractor. Proper recordation and submission of partial-claim documentation will ensure HUD’s interest is protected, according to the guidance. Currently, FHA has a high volume of missing partial-claim documents due to lenders’ failure to follow rules for recording and submitting security instruments. The revised guidance also contains directions for executing partial-claim docs and reconciling ...